Kenya: The IMF is being blamed, but the real problem is its decline in authority and efficacy

The recent Kenyan protests are a warning that the International Monetary Fund is failing. The public does not think it is helping its member countries manage their economic and financial problems, which are being exacerbated by a rapidly changing global political economy.

To be sure, the International Monetary Fund is not the only cause of Kenya’s problems with raising the funds to meet its substantial debt obligations and deal with its budget deficit. Other causes include the failure of the governing class to deal with corruption, to spend public finances responsibly and to manage an economy that produces jobs and improves the living standards of Kenya’s young population.

The country has also been hammered by drought, floods and locust infestations in recent years. In addition, its creditors are demanding that it continue servicing its large external debts despite its domestic challenges and a difficult international financial and economic environment.

The International Monetary Fund has provided financial support to Kenya. But the financing is subject to tough conditions which suggest that debt obligations matter more than the needs of long-suffering citizens. This is despite the Fund claiming that its mandate now includes helping states deal with issues like climate, digitalisation, gender, governance and inequality.

Unfortunately, Kenya is not an isolated case. Twenty-one African countries are receiving International Monetary Fund support.

In Africa,...

Read more